MISC BERHAD 82 INTEGRATED ANNUAL REPORT 2023 83 www.miscgroup.com BUSINESS REVIEW SECTION 7 Gas Assets & Solutions • Focus on selective LNGC projects and enhance the fleet with modern, energy-efficient LNGCs • Identify opportunities to leverage existing assets for FSU/FSRU/FSRP services and expand the ethane carrier business segment • Achieve operational excellence across all assets, maximising their value throughout their useful life while aligning with EEXI/CII requirements • Explore LCO2 and ammonia carrier business segments to establish a presence in the clean energy sector • Drive ongoing engagements with industry players and relevant authorities, both at a national and international level MOVING FORWARD Increasing Competition Strengthened market position • Progressed with strategic alliances and partnerships to enhance competitive advantage • Successfully secured long-term charter contract with QatarEnergy via consortium with NYK, K-Line & CLNG Evolving Global Regulatory Developments Implemented retrofit solutions • Evaluated technological solutions to retrofit less efficient assets to comply with new policy and regulatory requirements • Adopted ShaPoLi to enhance energy efficiency to comply with the IMO EEXI requirements Maximising Returns of the Asset Throughout the Useful Life Explored options to unlock or extend asset value • Explored non-conventional business opportunities • Sale and leaseback under the Nissen Kaiun partnership • Conversion of Puteri Delima Satu, into an FSU dedicated to PLNG2SB FSU project Challenges Mitigation Action NAVIGATING THE CHALLENGES IN 2023 Results Petroleum & Product Shipping WHAT WE DO AET is a leading global owner and operator of a fleet of tankers, playing a key role in delivering petroleum and refined products across the world. We are strong advocates of sustainable shipping practices, aligned to meet the world’s evolving energy needs. In addition to conventional energy shipping services for crude oil and refined petroleum products, we lead the market in specialised lightering services in the US Gulf. Furthermore, we are an established player in owning and operating DPSTs. As the exclusive owner-operator of MCVs, we have the capability to capture hydrocarbons and other contaminants in the event of an oil well incident. We are also a pioneering owner-operator of a growing fleet of LNG dual-fuel vessels, reflecting our commitment to investing in economically viable and environmentally responsible shipping solutions. Sustainability is currently at the forefront of the shipping industry. At AET, we are fully committed to this transformative journey, taking strides towards reducing emissions to contribute to a more sustainable industry. Cognisant of this, we have launched our new energy transition strategy #deliveringProgress that aims to deliver more energy with less emissions to meet the world’s need for energy security and society’s demand for lower emissions. This will be done through strengthening our core operations, purposeful entry into clean energy business and decarbonisation of our operations. This new strategy supports our goal to reduce our fleet’s GHG emissions and contributes to the Group’s decarbonisation targets. In 2023, we leveraged on favourable market conditions to deliver more value and made significant progress towards decarbonisation. AET delivers its best financial performance to date in 2023 and continues to progress its decarbonisation agenda. We took delivery of two new LNG dual-fuel VLCCs, with a third delivered in early 2024 as part of our asset rejuvenation programme. We are further translating ambitions into actions with our ongoing development of ultra-low emission vessels and collaborating with partners globally, as we recognise the urgency of addressing environmental challenges. While concerns on climate change and sustainability have prompted the industry to drive changes that impact people and planet positively, it also presents new opportunities for AET to strengthen its position in the industry. Zahid Osman President & CEO, AET
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